Priye Briggs
The Federal Government has directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to ensure petroleum marketers do not exploit Nigerians through excessive pricing in the deregulated downstream market.
Delivering the keynote at the NMDPRA General Counsel and Legal Advisers Forum in Abuja, Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, stressed that while deregulation allows market forces to determine prices, the regulator must prevent profiteering at consumers’ expense.
Lokpobiri noted that global crude prices have dropped significantly from $120 per barrel in April to about $72 last week following the easing of tensions between Iran and the United States. Yet, pump prices of petrol remain high, averaging ₦1,200 per litre, despite expectations of a downward adjustment.
He said: “While we believe that market forces will eventually restore equilibrium, the regulator also has a statutory responsibility to ensure that deregulation does not become an avenue for profiteering. This must be done in line with the extant provisions of the Petroleum Industry Act.”
The minister also charged NMDPRA to strengthen monitoring to ensure consumers receive the correct quantity of fuel purchased at filling stations. He emphasized that when consumers pay for 10 litres of petrol, they must receive exactly 10 litres.
Lokpobiri attributed Nigeria’s avoidance of fuel shortages during recent geopolitical tensions to downstream deregulation and the operationalisation of domestic refineries. He described the Petroleum Industry Act (PIA) as the foundation for transforming Nigeria’s petroleum industry, but stressed that investor confidence depends on consistent and predictable regulation.
NMDPRA Chief Executive, Mallam Rabiu Umar, echoed the need for regulatory certainty, transparency, and investor confidence, while the agency’s Secretary and Legal Adviser, Dr Joseph Tolorunse, highlighted that regulatory stability under the PIA has made Nigeria’s oil and gas industry more competitive and attractive to investment.